- The firm generates $8.0 million of gross revenue, indicating a meaningful scale for a two-partner practice.
- Revenue per partner is $4.0 million, which suggests high partner productivity relative to the current ownership structure.
- The firm produced 30,000 billable hours, showing a substantial level of operating activity.
- The firm has 20 staff supporting two partners, which provides meaningful leverage behind the partner group.
- An EBOC of 50% indicates that half of revenue remains after direct compensation costs, providing a clear measure of earnings capacity for valuation review.
- The firm’s partner base is very small, with only two partners, which increases key-person and continuity risk in a transaction.
- Partner age dispersion is significant, with one partner aged 54 and the other 24, creating potential succession and experience-depth concerns.
- Revenue is concentrated across just two partners at $4.0 million per partner, suggesting elevated client and relationship dependency at the partner level.
- The firm may be able to reduce key-person risk and improve succession value by building a transition plan around the older partner, given the wide partner age gap.
- With only 2 partners and 20 staff, there appears to be room to increase operational leverage by delegating more delivery work and expanding partner capacity toward higher-value advisory activities.
- The current EBOC of 50% suggests an opportunity to improve profitability through pricing discipline, workflow efficiency, and better utilization of billable hours.
- The firm appears to have key-person and succession risk because only two partners are listed and one partner is significantly older at 54, creating potential continuity risk if transition planning is limited.
- Partner productivity and revenue concentration risk may be elevated because gross revenue of $8,000,000 is split across only two partners, resulting in $4,000,000 of revenue per partner.
- Staffing leverage may be a concern because 30,000 billable hours are supported by 20 staff and only two partners, which could create operational strain if workload increases or key personnel leave.
- The firm’s profitability may be sensitive to margin pressure because EBOC is 50%, leaving limited room for unexpected compensation, staffing, or overhead increases.